Could i get loan interest deduction for CA State tax in 2018 if I have house loan which is more than $750,000 ? And what is "Additional Mortgage interest Adjustment" ?

[KatrinaB · Accepted solution]

Yes, the state of California is allowing taxpayers to deduct the mortgage interest for loans up to $1.000.000 rather than $750,000. The additional mortgage interest adjustment on the state return is a deduction for the disallowed portion of mortgage interest from the federal return.

Please view the California link below for more information.

https://www.ftb.ca.gov/current/Income-tax-reform.shtml

[ziliangx]

Thanks so much ! Regarding to the "additional mortgage interest adjustment on the state return", could you please help give one example ? My understanding is if in 2018, my mortgage is $800,000 and the interest i $18,000, for the adjustment, i will need fill $18,000 as these interests are disallowed in the Federal return ? or do i need fill $50,000 which is $800,000 minus $750,000

[ziliangx]

Thanks so much ! Regarding to the "additional mortgage interest adjustment on the state return", could you please help give one example ? My understanding is if in 2018, my mortgage is $800,000 and the interest i $18,000, for the adjustment, i will need fill $18,000 as these interests are disallowed in the Federal return ? or do i need fill $50,000 which is $800,000 minus $750,000

[ziliangx]

Thanks so much ! Regarding to the "additional mortgage interest adjustment on the state return", could you please help give one example ? My understanding is if in 2018, my mortgage is $800,000 and the interest i $18,000, for the adjustment, i will need fill $18,000 as these interests are disallowed in the Federal return ? or do i need fill $50,000 which is $800,000 minus $750,000

[KatrinaB]

Yes, you will claim only the portion of the $18,000 that was disallowed on the federal return.